"Games Workshop to allow online indie sales again" Topic

At least, according to this note from Miniature Market:

link

Been a long time coming, but I wonder if it was owing to lost revenue or something similar.

Most of the b&m shops that were originally impacted back in the day are all gone now.

Very interesting. I doubt that it's 'lost revenue' in the sense of concerns about their current bottom line; they're doing very nicely, apparently, from licensing IP to app developers in particular.

However, I think they've realised that the online crowd was a revenue stream their previous decision cut off, possibly diverting it to rival manufacturers.

It was announced at GAMA and goes into effect on May 3

The new CEO Rountree is having a fun time undoing all the damage that Kirby did

My guess is that current GW management is determined to drive up market share for their products and reestablish the Warhammer brand as the "top" choice among miniature games, and reverse the slow slide of market share that their revenue numbers have shown in the Kirby years. Allowing online sales will likely increase the number of gamers buying their products, they must figure, ereby increasing the overall pool of customers enough to offset the reduced profit margins on such sales. Analysts have been saying for years that GW's problem was they were selling fewer figures to fewer customers, year after year, with increasing prices offsetting the loss. They must think they have hit the limit on how much prices can be increased and are returning t the days of seeking new customers instead.

They must think they have hit the limit on how much prices can be increased

God, I hope so. I can remember when GW claimed that the benefit of plastic minis was how much more affordable they'd be. Initially, it was true…or, at least, the savings were passed on to the customer.

Who remembers getting three rhinos to a box?

I can remember when GW claimed that the benefit of plastic minis was how much more affordable they'd be.

Hahah yeah that was funny.

Who remembers getting three rhinos to a box?

Those were the days!

Sounds like a good idea to me, but I can't afford GW stuff anyway.

I used to play LOTR from them, I haven't been able to afford it for several years now. I can get 20 or more historical figs for the price of one of their figs!

It also avoids them having to discount in b&m retail channels to move inventory.

My guess is that current GW management is determined to drive up market share for their products and reestablish the Warhammer brand as the "top" choice among miniature games

I'd say so, they're probably willing to take a little a financial pain to do it as well, those lucrative IP licenses with software developers are only going to remain so for as long as GW can demonstrate they've got market share.

That is the beauty of playing LOTR. We don't have to use fantasy figs for the men.

You do know that most indie sellers were just using Ebay and quite frankly GW wouldn't have been able to stop sellers from selling their stuff.

Increase the market base, and then screw over the retailers yet again. Rinse, repeat.

Of course they could be acknowledging reality on the ground – something alot of companies, not just GW or gaming ones, have a problem with. Kirby was clearly of the view that GW was a gaming island unto itself and the Nile was a river in Egypt.

I think this is great!

As far as Kirby is concerned, when I worked as a Red Shirt we all couldn't take him seriously anymore when he called Pokemon a fad.

Couple of things to note:

Since Jan 1 2015, when Kevin Rountree took over as CEO, he has done the following things:

Relaunched discounted bundles (Start Collecting! boxes)
Relaunched Specialist Games – we have seen two Warhammer Quest games, relaunch of Blood Bowl, and Adeptus Titanicus is coming soon
Began relaunch and rebranding of LOTR/Hobbit SBG, including releasing new content and rereleasing out of production models
Launched GW's social media presence
Lowered prices on several items
Invested GW into the community (GW attending conventions, trade shows, doing interviews)
Released models of ranges people have been clamoring for – Genestealer Cults, Adeptus Custodes, Horus Heresy, etc.
(which has all increased GW's operating profits substantially, as per their last financial report – Unless I'm mistaken, the last several years have been
2011 – 15.24m
2012 – 19.14m
2013 – 21.25m
2014 – 12.3m
2015 – 16.48m
2016 – 30.62m)

…and now, reversed their "no online shopping carts" policy.

Additionally, someone mentioned "lucrative IP licenses", however, we saw on GW's recent financial statement, the IP licenses account for a very tiny percentage of income (something like 2% of revenue)

Needless to say, the new CEO has done wonders for GW's customer base, brand, and, obviously, has worked in courting new customers and getting old gamers to buy products again (witness the number of anti-GW TMP'ers even admitting to having bought the new Blood Bowl releases!)

I have seen a turn-around. But I await 40k 8th and their future handling of Necrogeddon for full judgement.

I imagine this is part of their general "holy smokes what if we became awesome again?" strategy from the past year or three.

2016 – 30.62m

Try like $16.86 USDM

PDF link

Which is a long way from $30.62 USDM, a really long way.

Additionally, someone mentioned "lucrative IP licenses", however, we saw on GW's recent financial statement, the IP licenses account for a very tiny percentage of income (something like 2% of revenue)

2% how about 35.23%

Or do you believe that $5.94 USDM is just 2% of $16.86 USDM.

You must do math differently.

Oh and you know I will be waiting for their 2017 report, which I do expect some very short term increases due to the many Stand-Alone games that they put out.

But they will be just that short term because many FLGS are still sitting on quite a few of those copies and they are not selling.